
[Code of Federal Regulations]
[Title 31, Volume 1]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR2]

[Page 80-86]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
PART 2--NATIONAL SECURITY INFORMATION--Table of Contents
 
Subpart A--Original Classification

Sec. 2.1  Classification levels [1.1(a)].\1\
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    \1\ Related references are related to sections of Executive Order 
12356, 47 FR 14874, April 6, 1982.
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    (a) National security information (hereinafter also referred to as 
``classified information'') shall be classified at one of the following 
three levels:
    (1) Top Secret shall be applied to information, the unauthorized 
disclosure of which reasonably could be expected to cause exceptionally 
grave damage to the national security.
    (2) Secret shall be applied to information, the unauthorized 
disclosure of which reasonably could be expected to cause serious damage 
to the national security.
    (3) Confidential shall be applied to information, the unauthorized 
disclosure of which reasonably could be expected to cause damage to the 
national security.
    (b) Limitations [1.1(b)]. Markings other than ``Top Secret,'' 
``Secret,'' and ``Confidential,'' shall not be used to identify national 
security information. No other terms or phrases are to be

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used in conjunction with these markings to identify national security 
information, such as ``Secret/Sensitive'' or ``Agency Confidential''. 
The terms ``Top Secret,'' ``Secret,'' and ``Confidential'' are not to be 
used to identify non-classified Executive Branch information. The 
administrative control legend, ``Limited Official Use'', is authorized 
in Treasury Directive 71-02, ``Safeguarding Officially Limited 
Information,'' which requires that information so marked is to be 
handled, safeguarded and stored in a manner equivalent to national 
security information classified Confidential.
    (c) Reasonable Doubt [1.1(c)]. When there is reasonable doubt about 
the need to classify information, the information shall be safeguarded 
as if it were ``Confidential'' information in accordance with subpart D 
of this regulation, pending a determination about its classification. 
Upon a final determination of a need for classification, the information 
that is classified shall be marked as provided in Sec. 2.7. When there 
is reasonable doubt about the appropriate classification level, the 
information shall be safeguarded at the higher level in accordance with 
subpart D, pending a determination of its classification level. Upon a 
final determination of its classification level, the information shall 
be marked as provided in Sec. 2.7.

Sec. 2.2  Classification Authority.

    Designations of original classification authority for national 
security information are contained in Treasury Order (TO) 102-19 (or 
successor order), which is published in the Federal Register. The 
authority to classify inheres within the office and may be exercised by 
a person acting in that capacity. There may be additional redelegations 
of original classification authority made pursuant to TO 102-19 (or 
successor order). Officials with original classification authority may 
derivatively classify at the same classification level.

[63 FR 14357, Mar. 25, 1998]

Sec. 2.3  Listing of original classification authorities.

    Delegations of original Top Secret, Secret and Confidential 
classification authority shall be in writing and be reported annually to 
the Departmental Director of Security, who shall maintain such 
information on behalf of the Assistant Secretary (Management). These 
delegations are to be limited to the minimum number absolutely required 
for efficient administration. Periodic reviews and evaluations of such 
delegations shall be made by the Departmental Director of Security to 
ensure that the officials so designated have demonstrated a continuing 
need to exercise such authority. If, after reviewing and evaluating the 
information, the Departmental Director of Security determines that such 
officials have not demonstrated a continuing need to exercise such 
authority, the Departmental Director of Security shall recommend to the 
Assistant Secretary (Management), as warranted, the reduction or 
elimination of such authority. The Assistant Secretary (Management) 
shall take appropriate action in consultation with the affected 
official(s) and the Departmental Director of Security. Such action may 
include relinquishment of this authority where the Assistant Secretary 
(Management) determines that a firm basis for retention does not exist.

Sec. 2.4  Record requirements.

    The Departmental Director of Security shall maintain a listing by 
name, position title and delegated classification level, of all 
officials in the Departmental Offices who are authorized under this 
regulation to originally classify information as Top Secret, Secret or 
Confidential. Officials within the Departmental Offices with Top Secret 
classification authority shall report in writing on TD F 71-01.14 
(Report of Authorized Classifiers) to the Departmental Director of 
Security, the names, position titles and authorized classification 
levels of the officials designated by them in writing to have original 
Secret or Confidential classification authority. The head of each bureau 
shall maintain a similar listing of all officials in his or her bureau 
authorized to apply original Secret and Confidential classification and 
shall provide a copy of TD F 71-01.14, reflecting the list of officials 
so authorized, to the Departmental Director of Security.

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These listings shall be compiled and reported no less than annually each 
October 15th as required by Treasury Directive 71-01, ``Agency 
Information Security Program Data''.

Sec. 2.5  Classification categories.

    (a) Classification in Context of Related Information [1.3(b)]. 
Certain information which would otherwise be unclassified may require 
classification when combined or associated with other unclassified or 
classified information. Such classification on an aggregate basis shall 
be supported by a written explanation that, at a minimum, shall be 
maintained with the file or referenced on the record copy of the 
information.
    (b) Unofficial Publication or Disclosure [1.3(d)]. Following an 
inadvertent or unauthorized publication or disclosure of information 
identical or similar to information that has been classified in 
accordance with the Order or predecessor Orders, the agency of primary 
interest shall determine the degree of damage to the national security, 
the need for continued classification, and, in coordination with the 
agency in which the disclosure occurred, what action must be taken to 
prevent similar occurrences under procedures contained in Sec. 2.32.

Sec. 2.6  Duration of classification.

    (a) Information Not Marked for Declassification [1.4]. Information 
classified under predecessor orders that is not subject to automatic 
declassification shall remain classified until reviewed for possible 
declassification.
    (b) Authority to Extend Automatic Declassification Determinations 
[1.4(b)]. The authority to extend classification of information subject 
to automatic declassification under any predecessor Executive Order to 
the Order is limited to those officials who have classification 
authority over the information and are designated in writing to have 
original classification authority at the level of the information to 
remain classified. Any decision to extend the classification on other 
than a document-by-document basis shall be reported to the Assistant 
Secretary (Management) who shall, in turn, report this fact to the 
Director of the Information Security Oversight Office.

Sec. 2.7  Identification and markings [1.5(a), (b) and (c)].

    The information security system requires that standard markings be 
applied to classified information. Except in extraordinary circumstances 
as provided in section 1.5(a) of the Order, or as indicated herein, the 
marking of paper and electronically created documents shall not deviate 
from the following prescribed formats. These markings shall also be 
affixed to material other than paper and electronically created 
documents, including file folders, film, tape, etc., or the originator 
shall provide holders or recipients of the information with written 
instructions for protecting the information.
    (a) Classification Level. The markings ``Top Secret,'' ``Secret,'' 
and ``Confidential'' are used to indicate: information that requires 
protection as classified information under the Order; the highest level 
of classification contained in a document; the classification level of 
each page and, in abbreviated form, the classification of each portion 
of a document.
    (1) Overall Marking. The highest level of classification of 
information in a document shall be marked in such a way as to 
distinguish it clearly from the informational text. Markings shall 
appear at the top and bottom of the outside of the front cover (if any), 
on the title page (if any), on the first and last pages bearing text, 
and on the outside of the back cover (if any).
    (2) Page Marking. Each interior page of a classified document is to 
be marked at the top and bottom, either according to the highest 
classification of the content of the page, including the designation 
``UNCLASSIFIED'' when it is applicable, or with the highest overall 
classification of the document.
    (3) Portion Marking. Only the Secretary of the Treasury may waive 
the portion marking requirement for specified classes of documents or 
information upon a written determination that:
    (i) There will be minimal circulation of the specified documents or 
information and minimal potential usage of the documents or information 
as a

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source for derivative classification determinations; or
    (ii) There is some other basis to conclude that the potential 
benefits of portion marking are clearly outweighed by the increased 
administrative burdens.
    (b) Unless the portion marking requirement has been waived as 
authorized, each portion of a document, including subjects and titles, 
shall be marked by placing a parenthetical designation either 
immediately preceding or following the text to which it applies. The 
symbols, ``(TS)'' for Top Secret, ``(S)'' for Secret, ``(C)'' for 
Confidential, and ``(U)'' for Unclassified shall be used for this 
purpose. The symbol, ``(LOU)'' shall be used for Limited Official Use 
information. If the application of parenthetical designations is not 
practicable, the document shall contain a statement sufficient to 
identify the information that is classified and the level of such 
classification, as well as the information that is not classified. If 
all portions of a document are classified at the same level, this fact 
may be indicated by a statement to that effect, e.g. ``Entire Text is 
Classified Confidential.'' If a subject or title requires 
classification, an unclassified identifier may be applied to facilitate 
reference.
    (c) Classification Authority. If the original classifier is other 
than the signer or approver of the document, his or her indentity shall 
be shown at the bottom of the first and last pages as follows: 
``CLASSIFIED BY (identification of original classification authority)''.
    (d) Bureau and Office of Origin. If the identity of the originating 
bureau or office is not apparent on the face of the document, it shall 
be clearly indicated below the ``CLASSIFIED BY'' line.
    (e) Downgrading and Declassification Instructions. Downgrading and, 
as applicable, declassification instructions shall be shown as follows:
    (1) For information to be declassified automatically on a specific 
date:

Classified by___________________________________________________________
Office__________________________________________________________________
Declassify on (date)____________________________________________________

    (2) For information to be declassified automatically upon the 
occurrence of a specific event:

Classified by __________________________________________________________
Office _________________________________________________________________
Declassify on (description of event) ___________________________________

    (3) For information not to be declassified automatically:

Classified by __________________________________________________________
Office _________________________________________________________________
Declassify on Origination Agency's Determination Required or ``OADR''

    (4) For information to be downgraded automatically on a specific 
date or upon occurrence of a specific event:

Classified by __________________________________________________________
Office _________________________________________________________________
Downgrade to ___________________________________________________________
on (date or description of event) ______________________________________

    (f) Special Markings--(1) Transmittal Documents [1.5(c)]. A 
transmittal document shall indicate on its first page and last page, if 
any, the highest classification of any information transmitted by it. It 
shall also include on the first and last pages the following or similar 
instruction:
    (i) For an unclassified transmittal document:

Unclassified When Classified
Enclosure(s) Detached.

    (ii) For a classified transmittal document:

Upon Removal of Attachment(s)
this Document is _______________________________________________________


(classification level of the transmittal document alone), or:

This Document is Classified ____________________________________________
with Unclassified Attachment(s).

    (2) Restricted Data or Formerly Restricted Data [6.2(a)]. Restricted 
Data or Formerly Restricted Data shall be marked in accordance with 
regulations issued under the Atomic Energy Act of 1954, as amended. 
Restricted Data is information dealing with the design, manufacture, or 
utilization of atomic weapons, production of special nuclear material or 
use of special nuclear material in the production of energy. Formerly 
Restricted Data is classified information that has been removed from the 
``restricted data'' category but still remains classified. It relates 
primarily to the military utilization of atomic weapons.
    (3) Intelligence Sources or Methods [1.5(c)]. Documents that contain 
information relating to intelligence sources

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or methods shall include the following marking unless otherwise 
prescribed by the Director of Central Intelligence: ``WARNING NOTICE--
INTELLIGENCE SOURCES OR METHODS INVOLVED'' To avoid confusion as to the 
extent of dissemination and use restrictions governing the information 
involved, this marking may not be used in conjunction with special 
access or sensitive compartmented information controls.
    (4) Foreign Government Information (FGI) [1.5(c)]. Documents that 
contain FGI shall include either the marking ``FOREIGN GOVERNMENT 
INFORMATION,'' or a marking that otherwise indicates that the 
information is foreign government information. If the information is 
foreign government information that must be concealed, given the 
relationship or understanding with the foreign government providing the 
information, the marking shall not be used and the document shall be 
marked as if it were wholly of United States origin. However, such a 
marking must be supported by a written explanation that, at a minimum, 
shall be maintained with the file or referenced on the original or 
record copy of the document or information.
    (5) National Security Information [4.1(c)]. Classified information 
furnished outside the Executive Branch shall show the following marking:

NATIONAL SECURITY INFORMATION
Unauthorized Disclosure Subject to
Administrative and Criminal Sanctions

    (6) Automated Data Processing (ADP) and Computer Output [1.5(c)]. 
(i) Documents that are generated via ADP or as computer output may be 
marked automatically by systems software. If automatic marking is not 
practicable, such documents must be marked manually.
    (ii) Removable information storage media, however, will bear 
external labels indicating the security classification of the 
information and associated security markings, as applicable, such as 
handling caveats and dissemination controls. Examples of such media 
include magnetic tape reels, cartridges, and cassettes; removable disks, 
disk cartridges, disk packs, and diskettes, including ``floppy'' or 
flexible disks; paper tape reels; and magnetic and punched cards. Two 
labels may be required on each medium: a color coded security 
classification label, i.e., orange Standard Form 706 (Top Secret label), 
red SF 707 (Secret label), blue SF 708 (Confidential label), purple SF 
709 (Classified label), green SF 710 (Unclassified label); and a white 
SF 711 (Data Descriptor label). National stock numbers of the labels, 
which are available through normal Federal Supply channels, are as 
follows: SF 706, 7540-01-207-5536; SF 707, 7450-01-207-5537; SF 708, 
7450-01-207-5538; SF 709, 7540-01-207-5540; SF 710, 7540-01-207-5539 and 
SF 711, 7540-01-207-5541. Treasury Directive 71-02 provides for the use 
of a green ``Officially Limited Information'' label, TD F 71-05.2, to 
identify information so marked.
    (iii) In a mixed environment in which classified and unclassified 
information in processed or stored, the ``Unclassified'' label must be 
used to identify the media containing unclassified information. In 
environments in which only unclassified information is processed or 
stored, the use of the ``Unclassified'' label is not required. 
Unclassified media, however, that are on loan from (and must be returned 
to) vendors do not require the ``Unclassified'' label, but each requires 
a Data Descriptor label with the words, ``Unclassified Vendor Medium'' 
entered on it.
    (iv) Each medium shall be appropriately affixed with a 
classification label and, as applicable, with a Data Descriptor label at 
the earliest practicable time as soon as the proper security 
classification or control has been established. Labels shall be 
conspicuously placed on media in a manner that will not adversely affect 
operation of the equipment in which the media is used. Once applied, the 
label is not to be removed. A label to identify a higher level of 
classification may, however, be applied on top of a lower classification 
level in the event that the content of the media changes, e.g., from 
Confidential to Secret. A lower classification label may not be applied 
to media already bearing a higher classification label. Personnel shall 
be responsible for appropriately labeling and controlling ADP and 
computer storage media within their possession.

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    (g) Electronically Transmitted Information (Messages) [1.5(c)]. 
Classified information that is transmitted electronically shall be 
marked as follows:
    (1) The highest level of classification shall appear before the 
first line of text;
    (2) A ``CLASSIFIED BY'' line is not required;
    (3) The duration of classification shall appear as follows:
    (i) For information to be declassified automatically on a specific 
date: ``DECL: (date)'';
    (ii) For information to be declassified upon occurrence of a 
specific event: ``DECL: (description of event)'';
    (iii) For information not to be automatically declassified which 
requires the originating agency's determination (see also 
Sec. 2.7(e)(3)): ``DECL: OADR'';
    (iv) For information to be automatically downgraded: ``DOWNGRADE TO 
(classification level to which the information is to be downgraded) ON 
(date or description of event on which downgrading is to occur)''.
    (4) Portion marking shall be as prescribed in Sec. 2.7(a)(3);
    (5) Specially designated markings as prescribed in Sec. 2.7(f) (2), 
(3), and (4) shall appear after the marking for the highest level of 
classification. These include:
    (i) Restricted Data or Formerly Restricted Data;
    (ii) Information concerning intelligence sources or methods: 
``WNINTEL,'' unless otherwise prescribed by the Director of Central 
Intelligence; and
    (iii) Foreign Government Information (FGI).
    (6) Paper copies of electronically transmitted messages shall be 
marked as provided in Sec. 2.7(a) (1), (2), and (3).
    (h) Changes in Classification Markings [4.1(b)]. When a change is 
made in the duration of classified information, all holders of record 
shall be promptly notified. If practicable, holders of record shall also 
be notified of a change in the level of classification. Holders shall 
alter the markings on their copy of the information to conform to the 
change, citing the authority for it. If the remarking of large 
quantities of information is unduly burdensome, the holder may attach a 
change of classification notice to the storage unit in lieu of the 
marking action otherwise required. Items withdrawn from the collection 
for purposes other than transfer for storage shall be marked promptly in 
accordance with the change notice.

Sec. 2.8  Limitations on classification [1.6(c)].

    (a) Before reclassifying information as provided in section 1.6(c) 
of the Order, authorized officials, who must have original 
classification authority and jurisdiction over the information involved, 
shall consider the following factors which shall be addressed in a 
report to the Assistant Secretary (Management) who shall in turn forward 
a report to the Director of the Information Security Oversight Office:
    (1) The elapsed time following disclosure;
    (2) The nature and extent of disclosure;
    (3) The ability to bring the fact of reclassification to the 
attention of persons to whom the information was disclosed;
    (4) The ability to prevent further disclosure; and
    (5) The ability to retrieve the information voluntarily from persons 
not authorized access in its reclassified state.
    (b) Information may be classified or reclassified after it has been 
requested under the Freedom of Information Act (5 U.S.C. 552), the 
Privacy Act of 1974 (5 U.S.C. 552a), or the mandatory declassification 
review provisions of the Order if such classification meets the 
requirements of the Order and is accomplished personally and on a 
document-by-document basis by the Secretary of the Treasury, the Deputy 
Secretary, the Assistant Secretary (Management) or an official with 
original Top Secret classification authority. Such reclassification 
actions shall be reported in writing to the Departmental Director of 
Security.
    (c) In no case may information be classified or reclassified in 
order to conceal violations of law, inefficiency, or administrative 
error; to prevent embarrassment to a person, organization, or agency; to 
restrain competition; or

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to prevent or delay the release of information that does not require 
protection in the interest of national security.
